by Lynda Kiernan

Biotech company Demetrix has closed on a $50 million Series A led by Tuatara Capital. The round also included existing investor Horizons Ventures, which previously led the company’s $11 million Seed round.

Founded by U.C. Berkeley researcher Jay Keasling in Emeryville, California, in 2015, and named for Demeter, the Greek goddess of the harvest, Demetrix uses microorganisms such as yeast in combination with fermentation and the most advanced biotechnology, data science, and automation, to accelerate the production of large volumes of cannabinoids in a cost-effective manner. 

“Tuatara Capital partners with industry-defining companies that are shaping the future of the legal cannabis industry, and we are excited to lead this investment in Demetrix,” said Marc Riiska, partner at Tuatara Capital.

“The team at Demetrix has a proven track record of commercializing rare ingredients at scale and have extraordinary expertise with both biological engineering and research and development around cannabinoids. The ability to consistently produce high purity, single cannabinoids in a process that easily scales to meet demand is an important factor for this emerging industry.”

As the U.S. continues to march toward legalization, the cannabinoid supply chain has mainly relied upon traditional cultivation and extraction methods to isolate and produce high-quality THC and CBD. However, these traditional extraction procedures have not been very efficient, as most cannabinoids exist in very low concentrations in plants. Demetrix’ technology is working to answer this challenge by using baker’s yeast to “brew” large volumes of high-quality and highly-pure cannabinoids at a low cost. 

“Horizons Ventures shares Demetrix’s passion for unlocking the potential of natural ingredients for customers around the world via its cutting-edge synthetic biology work, a field that we truly believe will bring a seismic shift to the world,” said Patrick Zhang at Horizons Ventures.

“Cannabinoids hold tremendous promise for improving human health, and Demetrix is uniquely positioned to bring these compounds to market in a cost-efficient way. We’re excited and proud to be part of this journey,” he continued.

The company noted that it intends to use the funds from this Series A to scale its operations, and to commercialize the first of more than 100 unique cannabinoids. 

“Demetrix’s mission is to help the world benefit from nature’s rarest ingredients, and we’re excited to partner with world-class investors like Tuatara Capital and Horizons Ventures to help global pharmaceutical, supplement, and consumer product companies deliver innovative products using cannabinoids,” said Jeff Ubersax, CEO, Demetrix. “We’ve assembled a team of industry veterans, built a scalable technology platform, and are working with global regulatory organizations to quickly commercialize.”

 

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.